Reputable forex brokers have created affiliates programs in exchange for quality leads. Forex affiliates gets to earn commission for every successful lead that they direct to the broker’s website. Affiliate marketing has become a crucial market component for forex brokers. It enable them to reach out to wider audience, attract new clients as well as boost their sales. Nowadays, many forex brokers offer forex affiliate program meaning that forex affiliates have plenty of options to choose from. When signing up for a new forex affiliate program, you will be asked to choose between revenue share deal or cost per acquisition. If you have already made a leap into the world of forex affiliate marketing, then you have probably comes across these two terms. Even if you are familiar with them, the most important thing is knowing which one between the two is the best for you. The amount of money that you will earn depends on the payment structure that you choose. So between cost per acquisition (CPA) and revenue sharing, which one is the best? In this article, we are going to discuss two types of affiliate compensation in details to help you make an informed decision when choosing one.
What exactly is Cost Per Acquisition (CPA) ?
Cost per acquisition is a one off fee that you will receive from your affiliate partner for every successful leads that gets to sign up. Most forex brokers have set strict rules that must be met in order for forex affiliate to earn commission. The leads that the affiliate generates must be quality. This means that the client must sign up and deposit a certain minimum amount that the broker has specified. In addition to that, the deposit must be made within a certain period of time and some only give commission for new sign ups. The client activity on the trading platform will also determine the commission that you will earn. Before you choose CPA payment plan, it is very important to fully understand all minimum requirements that must be met in order to earn commission. There is nothing more frustrating than referring 10 leads then earn nothing simply because they deposited less the minimum amount the broker has specified.
What is Revenue Share ?
Revenue share is a commission based structure where you get paid a certain percentage of the profit from payment made by the client that you refer. The revenue share commission can be as low as 5% or as high as 65%. The amount of money that you will get to earn depends on how active your leads are. This means if your leads trade a lot, then you going to earn a lot of money. Most revenue share plans have life time aspect but some only last for a certain period of time. It is therefore very important to understand the full details of the plan before you make your final decision. Lifetime option is the best because it enables you to earn commission for as long as your leads are active. Another very important thing that you need to consider when choosing revenue share is how your commission is calculated. Some brokers give commission based on revenue generated by the trader while some calculate based on spread value.
Between pay per acquisition and revenue share, which one should you choose?
Knowing various types of commissions offered is just the first step. The most crucial thing is choosing the right plan for your business. Before determining which plan is best for you, you need to ask yourself three crucial questions. They include:
What is your goal?
What do you want to achieve?
Are you looking for short or long term benefits?
If you are looking for short term benefits or if you don’t expect the leads that you refer to stay for long period of time, then the cost per acquisition structure is the best option for you. This plan will allow you to earn big one off payment when your leads are approved. Once you get your commission, you will not have to worry what the trader do afterwards. You main target will be to look for new clients, not worrying about old clients. On the other hand, if your strategy is long term, then revenue sharing is best option for you. At first, commission will be low but as you continue to build your client base you will earn good commission from your leads for a life time.